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Use the table for the question(s) below.
Consider the following realized annual returns:
-The average annual return on IBM from 1996 to 2005 is closest to:
Present Value
The immediate worth of a future cash stream or sum, taking into account a defined return rate.
Compound Interest
This refers to interest being calculated on both the original amount deposited or borrowed and on the interest that has previously been added over time.
Desired Rate
The expected or target rate of return on an investment or project, often used as a benchmark for evaluating potential investment opportunities.
Depreciation Deduction
A tax deduction representing the decrease in value of an asset over time, allowed to be deducted from taxable income.
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